Government Mulls Longer Fixed Cost Recovery Period For Hydro Power

The government is looking at extending fixed cost recovery period of hydro projects to 30- 35 years, from 12 years at present, to bring the tariff down to as low as Rs 2 per unit, Power Minister R K Singh has said.

The ministry is working on the hydropower policy to provide Rs 16,000 crore assistance to projects to promote the clean source of energy and it is expected to be tabled before the Union Cabinet for approval this month.

“The depreciation period should also be increased to reduce the (fixed) cost of hydro plants. The life of hydro power plants is above 70 years,” Singh, who is also the minister of new and renewable energy, told PTI in an interview. Read More…